By Susana Cipriota Co-Founder at Funnely
Glossary 1 The Game: Full Funnel Strategy
2 Formaon: Facebook Pixel Setup 3 The Team: Ecomm Variables Impacng Facebook Ad Performance 4 The Plays: Facebook Ad Funnel Components 4.1 Targeng 4.1.1 Demand Generaon 4.1.2 Demand Capture 4.1.3 Placement
4.2 Creavity, Promoons and Ad types 4.2.1 Aenon 4.2.2 Interest 4.2.3 Desire 4.2.4 Acon 4.2.5 Loyalty
4.3 Bidding 4.3.1 Acons 4.3.2 Daily Unique Reach 4.3.3 Impressions 4.3.4 Clicks 4.4 Budget
4.4.1 All About Reach 4.4.2 All About ROI 4.4.3 All About LTV 5. Review The Film: Measuring for Success 6. The Kick O: Building the Funnel
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Full Funnel Strategy ith 1.65 billion monthly acve users, 1 billion stories posted every day, 100 million hours of video watched every day and 2 billion photos shared every day Facebook is the best channel for Ecommerce adversers to reach new qualied leads, exist ing prospects and clients. It’s adversing system has become very robust and full of new features every month. 2.5 million monthly acve adversers ulize Facebook, so e-retailers need a deep understanding of all the best pracces to opmize their budget more m ore than ever. From From Ecommerce components and KPIs to specif ic targeng, budget, bidding, placements and creavity that covers every step of the sales funnel, you’ll need to use them all when forming your ad strategy on Facebook. Facebook.
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Top performing performi ng Facebook ads for Ecommerce come from managing a group of campaigns covering every step of the funnel. The funnel allocaon approach is a must for ecommerce adversers as it’s granularity allows for beerperforming ads by lowering the cost per purchase and boosng ROAS and sales. Once the custom audience events are placed
in your ecomm site you can start feeding them right away. The magic will not happen if you avoid this step. The granular allocaon lets you opmize your investment between lead gen and retargeng campaigns. And the
1 2 3 4 5
more granular you map all the steps of your sales funnel, the lower your average cost of purchase will be as you are able to oer beer promoons to highly relevant prospects. This is how your group of audiences should look like:
Qualified Leads
1 -(2,3,4,5) Homepage Visitors Product Visitors
Add To Cart Clients
2 -(3,4,5) 3 -(4,5) 4 -(5)
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REMEMBER, THE AUDIENCES YOU WILL BE TARGETING IN EACH CAMPAIGN ARE JUST AS IMPORTANT AS THE ONES YOU ARE EXCLUDING SO YOU CAN AVOID OVERLAPPING MESSAGES.
Formaon: Facebook Pixel Setup ith the world of ecommerce always changing for marketers, using current, cung-edge technology is a must if you want to take your online sales metrics to the next level. Facebook has upgraded its pixel technology by combining the power of its mulple old pixels, conversion and custom audiences all into one. As an e-retailer, a deeper under standing of its scope and possibilies will help you plan and execute a rocking Facebook (and Instagram) ad strategy. Today there are already 2.5 million acve adversers on their plaorm, so a granular allocaon of your ad dollars is more important than ever if you need to lower your cost per conversion .
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Implementaon of the Facebook pixel is required to structure a sales funnel for your ecommerce site. With this structure, you will be generang leads to feed the funnel and then remarkeng them depending on the acons they take on your site to nally convert them into clients or re-purchasers. The pixel consists of a base code and several events. You You can use the 9 st andard events Facebook has put together or customize your own. This is a funnel example with 6 of them: Some standard retargeng plaorms haven’t been built with a performance focus, so
they don’t have the ability to track events. However, this is a must if you plan to master the art of Facebook ads for Ecommerce. Facebook has put together a group of standard events that will help you aribute conversions in your reporng. These include AddToWishlist AddT oWishlist, AddT AddToCart oCart , IniateCheckout, AddPaymentInfo , Purchase, and more (check the funnel below as an example). Although you’ll need a developer to insert a Facebook pixel and set up events on your site, the me investment is worth it. You need to be aware of these 3 powerful features available with the Facebook pixel: 1- BUILDING REMARKETING AUDIENCES:
The pixel will be triggered by the standard events and Facebook will idenfy the user depending on their behavior on your ecom merce site, generang audiences for your ads. 2- CONVERSION OPTIMIZATION: Opmizing your ads for conversion will a llow Facebook to deliver them to people most likely to visit, add to cart, or purchase your product. 3- CONVERSION TRACKING: You You can l earn how successful your ads are by reporng on events. Keep in mind that revenue is not always a great KPI for your ads. Depending on the level of the funnel you are targeng, the KPIs should change.
The Team: Team: Ecomm Variabl Variables es Impacng Facebook Ad Performance Ecomm KPIS Ad KPIS Ecomm Variables Market
Ad Variables
Targeng
CPM
Budget
CTR
RO AS
Pricing Business Margins Product Life Cy Cycle
CPA CP A
Placement
CR
Purchase Frequency Product Catalog Size
Creave Crea ve
very online business has it’s own components which will more or less inuence it’s Facebook adversing performance. Although Although all of them t hem are variables on the business side, many of them must remain stagnant due to their importance in the business model. However, However, it is important to understand their relaon to ad metrics. Let’s take a look at some of them in detail:
E
CAC
Bidding
LTV
Frequency Relevance Rele vance Score
AOV
Delivery Churn
The Team: Ecomm Variables Impacng Facebook Ad Performance
MARKET: Each market (Country, Region, City) MARKET: Each has it’s own online behavior and therefore, it’s own average CPM. While targeng developing markets yields a lower CPM, it will usually re sult in lower CTRs or conversion rates. Tip: It’s always a good idea to test mulple markets in dierent ad sets and learn from their metrics. The 2015 Q4 average CPM for the Americas was $8.01, $4.61 in EMEA and $3.46 in APAC. PRICING: Aordable products usually produce PRICING: Aordable a shorter path to purchase due to the emo onal and impulsive process, while expensive products require mulple touch-points (ad impressions) between the lead and the brand before converng them into a client. However, a higher product product price will typically result in a higher margin. Tip: Up-selling strategies with DPA (direct product ads) will help you raise the AOV (average order value) and leverage your biz margins. BUSINESS MARGINS: The higher your business margin, the more you can bid in the aucons to win ad delivery. If your margins are very constrained the space to test, learn and iterate is very limited. Always include margins in your ROI formula to see the big picture and the real ROI. Tip: Some adversers assign the real valvue of the product
(Price - Cost of product) instead of the price in the Product feed so they can get the actual ROI driven by DPA directly in Facebook’s ad reporng tool. PRODUCT LIFE CYCLE: The product life cycle is the progression of an item through the four stages of its me on the market. The four life cycle stages are: Introducon, Growth, Maturity and Decline. The acquision cost level is directly correlated with this cycle. The earlier the business is in the cycle, the more expensive the price will be to get a new client due to the aggressive demand generaon process you’ll need to pursue. Tip: Ensure your relevance score is as high as possible so you can lower your CPM. PURCHASE FREQUENCY: The FREQUENCY: The number of mes a customer makes a purchase in a given period of me will be directly correlated with the product category. If the purchase frequency for your brand is lower than category rates, your customer is likely spending their money on your competors. Categories that have high levels of purchase frequency also lend themselves to high levels of arion among customers. Tip: If your company is based on a subscripon mo del (No purchase frequency), retargeng clients will help lower churn.
PRODUCT CATALOG SIZE: We SIZE: We all agree that the best-performing Facebook ads are Dy namic Products Ads. DPA are a cross-device retargeng soluon that helps e-marketers promote their enre Product Catalog. It’s a robust ad type that combines dynamic oerings with opmized targeng. However, it requires a wider product catalog oering for beer performance. If you are promong a uni-product company, this tool is not for you.
Although all of the online business components are variables on the business side, many of them must remain stagnant due to their importance in the business model. However, it is important to understand their relaon to ad metrics.
The Plays: Facebook Ad Funnel Components
TARGETING reang successful Facebook Facebook ad cam paigns for ecommerce usually requires rigorous tesng and constant opmizaon. Tesng Tesng helps e-marketers like you i denfy small tweaks you can make to your campaign sengs to drascally increase ROAS.
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While geng the best value from your ad spend by reaching relevant audiences for your business is challenging, there are many best pracces and ps you can use to guide you in this art. The demand generaon and demand capture stages should be approached sepa rately in terms of your targeng strategy.
While geng the best value from your ad spend by reaching relevant audiences for your business is challenging, there are many best pracces and ps you can use to guide you in this art.
The Plays: Facebook Ad Funnel Components - Targeng Targeng
A. Demand Generaon Generaon Lookalike audiences and interest-based targeting are two tools you can manage to generate qualied leads to your ecommerce site. Reach is crucial when generang demand so you can scale up your results. It’s important to test both targeng types (avoid using them in parallel to avoid overlapping) so you can learn from metrics and opmize. You can combine both of them to narrow big audiences and ensure you are target ing only relevant leads. All Lookalike audiences are based on a custom audience (From a datale or from your Website). The suggested size of the seed audience is at least 2,000 people and if possible, use a higher-valued-clients base to leverage the relevance of the lookalike
audience. If not possible, you can use clients, basket abandoners, or product visitors as seed custom audience, as well. The best pracce to test lookalike audiences is by implemenng a process called: Nested Lookalikes. It means creang 2 o 3 dierent Lookalike audiences (Using the relevance vs wide percentages available, from 1% to 10% of the country) and tesng each of them in dierent ad-sets. You You need to ensure you are excluding the ones that are included in the other ad-sets so you avoid overlapping. You You will learn l earn which audience brings the lower cost per acon and the highest ROI (Usually the one with the highest CPA, but is not always the case).
B. Demand Capture
VS.
Once your qualied leads have visited your ecommerce site, it’s me to remarket to them based on their behavior on your site to ensure conversion and a higher return on investment. Custom audiences and website custom audiences are great technology tools for delivering retargeng campaigns. Ensure a Facebook Pixel and some standard events are in place, and you’re ready to go!
The Plays: Facebook Ad Funnel Components - Targeng Targeng
Placements Mapping and understanding the path to online purchase is crical for e-marketers as this exercise will reveal crical touch-points of their customer’s journey to a purchase. Data conrms that every industry is dierent and that mulple parameters (purchase (purchase values, the length of the journey, client prole) inuence the customer behavior through the markeng funnel, so you don’t always seal the deal by delivering a single ad. While challenging, it’s crucial e-marketers design campaigns that deliver the right message at the right moment in a customer’s journey to purchase. Generang demand with a lead gen campaign and capturing this intenon with granular retargeng aerwards is a good starng point. But the only way to opmize ROAS is by tesng, measuring and learning from each iteraon and adjusng your markeng budgets accordingly. To complicate maers, most customer journeys take place on dierent devices at home, on the go, and at work (9 in 10 consumers start an acvity on one device and nish it on another). But don’t panic! You can measure all of these cross-device paths and aribute the right value to each of them in your Facebook general, the the smartadversing reports. In general, phone is considered the go-to device - 76%
of adults who own one use it while they are out and about. It’s always with them and is most commonly used for communicaon and social acvies. The tablet is viewed as the entertainment hub and is oen used at home, where 43% of tablets are shared with others. The laptop or desktop is the workhorse — 80% of online adults that own one use it at home, and it tends to be dedicated to import ant tasks like work or managing nances. The world is no longer transioning to mobile, as they are already there. With 1.2 billion smartphones in the world, people spend 3 hours of their day on their mobile phone. 20% of the monthly me spent on mobile is consumed by Instagram, Facebook and Messenger. As a result, these are the channels you should be ulizing to reach your audience. Mobile placements ( Facebook News feed Mobile + Audi Audience ence Net Network work + Instagram) are best ones for creang awareness, demand generaon and qualied leads. However, However, for retargeng campaigns, the News Feed Desktop placement sll gets the highest conversion rates in terms of purchase conversion. Addionally, the right column is a great placement for reminding your basket abandoners to come back and move forward with their purchase.
Data conrms that every industry is dierent and that mulple parameters (purchase values, the length of the journey, client prole) prole) inuence the customer behavior through the markeng funnel, so you don’t always seal the deal by delivering a single ad.
The Plays: Facebook Ad Funnel Components - Creavity, promoons and Ad types
CREATIVITY, PROMOTIONS AND AD TYPES mong the mulple ad types available on the Facebook Facebook adversing plaorm, there are 4 you should be using when markeng an ecomm site depending on your goal:
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Aenon: Aeno n: ‘Are ‘Are you you cool enough?’ Carousel ads are perfect for aracng the attenon of your qualied leads. You can merge images and videos into one ad so your users can swipe to see them all. They can explore your best-selling products or unlock a story while they swipe. There are endless opportunies for marketers to boost conversion rates in their top-funnel campaigns using carousel ads. Think of high-impact images, try mulple variaons, or display lifestyle images vs. products. Images are the rst touch-point qualied leads will noce about your post. Canvas is another opon for awareness generaon, as it creates an immersive experience for the user. In terms of promoons, consider including a First Time Shopper Oer in your ad as it can nudge those rst-me rst-me visitors and convert them into paying customers.
First Time Shopper Oer Examples: Free shipping on your rst purchase Free shipping and returns on your rst purchase A dollar amount o on the rst order
Interest: ‘You need shoes!’ Lead ads present a big opportunity for mar keters to push their prospect database to the next level. You can create a custom form to be completed by a user aer they click the SIGN UP call to acon. Once you generate interest from your audience, you can collect their contact informaon and start retargeng retargeng them not only through Facebook, but other channels as well. You can now combine Facebook ads with an email or call-center strategy. This is a great strategy and every marketer should try it sooner rather than later. Don’t hesitate to include an Email/Newsleer Subscripon Oer in your creave. As you probably already know, know, building an email list is extremely important for online retailers. By providing an oer in exchange for visitors emails, not only do you increase the chance of a conversion, but you also get their email for re-markeng through Facebook and email at the same me.
The Plays: Facebook Ad Funnel Components - Creavity, promoons and Ad types
Desire: ‘Our shoes are beer/ beer/cheaper’ cheaper’
Acon: ‘Get ‘Get our shoes shoes now’
Loyalty: ‘Come back, you love our shoes’
Dynamic Product Ads are the elite ads for
Link Post ads or Dynamic product ads with a single product are the most eecve Face book ad types for shopping cart abandoners. At this stage it’s not a good idea to remarket to your prospects with mulple oers if they have already added a product to the basket and abandoned it aerwards. We don’t want them to start the purchase process from scratch, but need them to move forward with the current choice instead. With close to 70% of all people abandoning their carts, it’s crical to include the sexiest Abandon Cart Oer possible to provide visitors with a reminder and incenve incenve to come back and complete their purchase. Some ideas:
Dynamic Product Ads with mulple products and a cross-selling/up-selling strategy is the
e-retailers. This magic remarkeng tool delivers the best-performing oer from your product feed to people most likely to purchase. You can set up mulple rules to fulll your business needs such as not displaying out of stock products. DPA combine targeng opmizaon with oer opmizaon. At this stage, you need to convince prospects that they want and desire your product and that it will sasfy their needs. If you are sll not delivering DPA, please start today, and your ROI will thank you! Ensure you include some kind of Volume/C Volume/Cart art Size Oer. An oer based on the total value of a shopping cart is an eecve up-selling tacc to encourage prospects to spend more, increasing your average order size. A strategic way to incorporate this into your online store is to calculate your average order value for previous months and oer a discount or free shipping on all orders 10-20% over your average order value. Some other oer ideas: Buy X items, get free shipping Free shipping on orders over $X $X discount on orders of $Y or more $X or X% o for repeat customers
A dollar amount o an order A dollar amount o each item A percentage o each item A dollar amount o shipping Free shipping X% o all items in a category Buy 1 get 1 free
best choice at this stage. Ensure you set up Product Sets in your product feed opons and you’ll be ready to raise the LTV of of your clients and also the AOV . You can test mulple rules and see how the AO AOV V responds. For example, for up-selling purposes, you can divide the product feed into 2 product sets using the Av Averag erage e Price Price as the dividing line and set the rule to deliver Expensive Product Sets instead of the whole catalogue.
Dynamic Product Ads are the elite ads for e-retailers. This magic remarkeng tool delivers the best-performing oer from your product feed to people most likely to purchase.
The Plays: Facebook Ad Funnel Components - Bidding
BIDDING lthough bidding may sound like a whole new world full of tricks, you can maneuver through the process by always bidding for acons when selecng the ‘Website Conversions’ objecve in the cam paign creaon process, especially for ecomm marketers. Each level of the funnel should be bidding for a dierent acon while the rest are kept constant. However, if you are an intermediate/advanced adverser, you can test mulple opmizaon opons and learn from them. Let’s dive into the available objecves:
A
Action Act ionss Facebook will deliver your ad to people who are most likely to perform that acon. This works best when you’re targeng large audiences (+100,000 people) as Facebook can pick out the top percentage of people most likely to act and discard the rest. The acons can be any Facebook Standard Event (or customized event). This opon is great for top-funnel campaigns
with a wide lookalike audience and “vising the landing page” as the acon pursued. However, If you are targeng a small audience, as is usually the case for retargeng campaigns, you need to know that Facebook will pick just a percentage of them to deliver to (usually 10%). Ensure you keep your budget low, or the campaign will not consume it all. For example, if your audience size is 50,000, then you can expect delivery to only 5,000. With an average CPM of $8 in America, the logical budget to set for this ad set would be $40. The other thing you need to keep in mind if you choose this acon-based opmizaon is that the Facebook algorithm needs at least 25 acons per day to adjust targeng. Therefore, if you selected Purchase as the event that triggers the acon, you need to ensure you are geng 25 purchases per day to let Facebook calibrate the delivery. If this is not the case, the suggested move would be to select the Add to Cart event or any other conversion event further up the funnel (i.e. Product Page Visit).
Each level of the funnel should be bidding for a dierent acon while the rest are kept constant. However, if you are an intermediate/advanced adverser,, you can test adverser mulple opmizaon opons and learn from them.
The Plays: Facebook Ad Funnel Components - Bidding
Daily Unique Reach
Impressions
Facebook Facebook will deliver your ad to as many people within your target audience as possible, but with a limit of no more than once per day . Facebook Facebook is not opmizing delivery to people most likely to perform the desired acon. Therefore, if you want Facebook Facebook to reach all the users in your website customer audience, for example, it will try to show your ad to as many of those as they can with the available budget, regardless of the likelihood of those users performing your desired acon. This is a great tool when retargeng extremely relevant audiences (Shopping Cart abandoners for example) as you will be serving ads to all of them but also avoiding high levels of frequency since delivery is limited to once per day. However, somemes you will see that your audience performs beer with more than one impression per day. If this is the case, you should test if opmizing for impressions works beer for you.
Facebook will deliver del iver your ad to as many people within your target audience and as many mes as possible, exactly like the Dai ly Unique Reach opon, but without the single daily impression limitaon. If your retargeng audience is smaller than 100,000 and contains only lower-funnel l ower-funnel prospects that need a nal push to convert into clients or are already clients, this is your best opon. Facebook will roll out a feature allowing the frequency cap to be set by the m arketer. This will be the perfect combinaon of reaching the enre audience with a set amount of daily impressions (not just one).
Clicks Facebook will deliver the ad to people most likely to click anywhere in your ad (link click, comment, like, share) and you will be paying for each click made to your ad. Currently you can select to be charged only by link clicks. This is usually discouraged for Direct response goals, but best for campaigns that are pursuing engagement from their audience.
Daily Unique Reach is a great tool when retargeng extremely relevant audiences as you will be serving ads to all of them but also avoiding high levels of frequency since delivery is limited to once per day.
The Plays: Facebook Ad Funnel Components - Bidding
Bidding & Ad type
QUALIFIED LEADS
LANDING VISITORS
Objec bjecve: ve: Website Conversion
Objecve: Objecve: Website conversion
Conversion Event: Landing Page Vising Vising
Conversion Event: Product Vising
PRODUCT VISITORS
BASKET VISITORS
CLIENTS
Objecve: Objecve: Product Catalogue (mul-product)
Objecve: Objecve: Product Catalogue (single pr product))
Objecve: Objecve: Product Catalogue (cross-selling)
Conversion Event: Add to Cart
Conversion Event: Purchase
Conversion Event: Purchase OPTIMIZE FOR ACTION (IF WCA < 100K = CPM)
OPTIMIZE FOR ACTION (IF WCA < 100K = CPM) OPTIMIZE FOR ACTION (IF WCA < 100K = CPM) OPTIMIZE FOR ACTION (IF AUDIENCE <100K = OPTIMIZE FOR IMPRESSIONS) OPTIMIZE FOR ACTION
AWARNESS
CONSIDERATION
PREFERENCE
PURCHASE
LOYALTY
The Plays: Facebook Ad Funnel Components - Bidding
Automat Aut omatic ic vs Manu Manual al bidd bidding ing Although it’s not your actual bid, Facebook uses a max bidding amount to ensure you will not pay more for your bid than it’s worth to you. If you are selecng “Opmize for Acon,”” by default, you are not asked to set Acon, a bid and Facebook will get the most acons at the best price. However, you can always test the manual bidding opon if you are an experienced adverser. Facebook shows a suggested range to guide you in this process, but we suggest you to do the math and set what the acon is worth to you. If the event is Add to Cart for example, and your Shopping
Cart Abandonment Rate is 60%, your Average Order Value is $150, and your Business Margin is 80%, your maximum bid to turn a visitor into the “shopping cart adder” would be $48. However, if Facebook is delivering less than expected, try to raise the bid (25% more than the highest suggested by Facebook) and see if the ROAS makes sense for your business. While bidding CPC or CPM, ensure you bid high enough (double than the amount suggested, as there is no range in these cases). Bidding too low is the primary reason for not geng your ad delivered.
You can always test the manual bidding opon if you are an experienced adverser. Facebook shows a suggested range to guide you in this process, p rocess, but we suggest you to do the math and set what the acon is worth to you.
The Plays: Facebook Ad Funnel Components - Budget
BUDGET eads , prospects , and clients we can also call these components demand gener aon, demand capture and customer retenon. In Facebook Ad terms, these can be translated to lookalike targeng, retargeng website visitors, and retargeng website clients. The best-performing allocaon model for your ecomm business will depend on mulple parameters. Some of the metrics that impact the three levels of the funnel include CAC, organic monthly visitors, average order value, repurchase rate, and LTV . For example, if your company’s repurchase rate is very low because of the essence of your product, it does not make sense for you to invest ad dollars in reaching out to clients as they are not going to convert. For the purpose of this analysis, let’s imagi ne an ideal company as a study model and focus on the 3 usual stages of an ecomm company’s journey through Facebook ads . The lower on the funnel a person is, the lower the cost is to convert them on a purchase. But, this is a process that needs a high budget, me and paence.
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Stage 1: All About Reach The rst stage is all about brand awareness and driving highly-qualied leads to your site. Most of your ad dollars (80% lead gen, 15% retargeng visitors, and 5% retargeng clients) should be invested in campaigns targeng large lookalike audiences based on your clients/ prospects. Usually, this stage of the journey is likely to be your biggest bet in terms of ROI. It’s very expensive to convert a lead into a client with one campaign, so you can’t expect a high return on your adversing investment. Focus instead on metrics such as cost per person reached and their conversion rate from lead to visitor. Try mulple lookalike audiences, placements, creaves and copy to iterate and lower the cost of acquiring a new prospect.
The best-performing allocaon model for your ecomm business will depend on mulple parameters. Some of the metrics that impact the three levels of the funnel include CAC, organic monthly month ly visitors, average order value, repurchase rate, and LTV.
The Plays: Facebook Ad Funnel Components - Budget
Stage 2: All About ROI
Stage 3: All About LTV
The second stage is the perfect me to boost
This is now the perfect funnel! It’s a funnel that allocates most of your ad dollars to retarget ing clients. Your cost per conversion will be the lowest, and the return highest. Focusing on generang up-selling and cross-selling campaigns with DPA or discount codes is key in this stage. You You earned a big client audience and retargeng them is the best opon in terms of the cost of conversion. It’s hard to get there, but if you manage to do it, you will validate that the perfect funnel you learned about at your university has been ipped around! Unfortunately, this is not the end of your journey journey but but just just the end of of one cycle. cycle. Once Once
your ROI metrics. You managed to lower your cost per qualied lead, and now it’s me to remarket to them! Remember that the cost of
converng a prospect is lower than converng a lead, so your adversing spend will bring a higher level of return. This it the perfect me to re-allocate a large amount of your ad dollars from lead-gen campaigns to retargeng retargeng soluons like Dynamic Product Ads. The larger your inventory is, the beer they’ll perform. The funnel composion model will be around 50% lead-gen, 40% retargeng product visitors, and 10% retargeng clients.
you’ve reached the third stage of the funnel and your customer retargeng campaigns have been running for a while, their performance may start to decrease. This could be a sign that it’s me to feed your funnel with fresh leads, and you’ll need to circle back to the rst stage again.
The lower on the funnel a person is, the lower the cost is to convert them on a purchase. But, this is a process that needs a high budget, me and paence.
The Plays: Facebook Ad Funnel Components - Budget
Adverti Adve rtisin sing g Spend Sp end Per Funne Fu nnell Level Le vel This is how adversing spend cycles would look:
ROI Evolution The ROI evoluon, with 3 stages included in each cycle, would look like this: This is of course a very sophiscated approach and requires you to track many variables daily before you decide how to reallocate your ad dollars.
Review The Film: Measuring for Success s an ecomm marketer, you must monitor your ad KPIs on a daily/ weekly basis to learn from each iteraon and opmize accordingly. You You prob ably already know that Ecomm KPIs are your main markeng objecve and they impact the business in the long term.
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The most important ad KPIs to monitor are: CPM: The cost per thousand i mpressions mpressions is denitely a useful KPI when measuring success - especially in top-funnel top-funnel campaigns where where wider audiences are required. The lower CPM you get, the more people you’ll reach.
CTR: Although CTR: Although many people don’t click on ads and go directly to your website from another device aerwards, the click-through rate does a good j ob of showing their engagement level and how it changes over me. CPA: The cost per acon is the metric that will reect success or failure of each campaign in the funnel more clearly. While the acon will change from one campaign to another, (vising (vising the landing page, vising the product page, Add to Cart, Purchase) Purchase) it’s very important important to keep a close eye on them.
CR: Conversion CR: Conversion rates will reect the health of your funnel and will show you where the drop-o is so you can opmize for conversion.
your ad is likely to be more expensive or shown less frequently. It’s important to monitor in both lead-gen and retargeng campaigns.
FREQUENCY: Frequency is the average FREQUENCY: Frequency number of mes your ad was shown to each person. If your website’s custom audiences for retargeng are not very large, you will noce that this metric gets high quickly. Refreshing your content every 15 days and varying your product feeds for DPA will help combat this.
DELIVERY: If your campaign is under-de DELIVERY: If livering, try raising your bid, replacing the conversion event with a higher-funnel higher-funnel one, or changing your targeng. Somemes retargeng campaigns underdeliver because of a small website custom audience, so ensure you re-allocate this budget to your top-funnel campaigns to feed the funnel.
RELEVANCE SCORE: The SCORE: The relevance score calculaon is based enrely on the posive and negave feedback Facebook receives from the target audience. If this metric decreases, then
Addionally, Addionally, the long-term metrics that will reect the success of ad campaigns are ROAS, CAC, LTV, LTV, AOV and Churn. Chu rn.
Ecomm KPIs are your your main markeng objecve and they impact the business in the long term. You You must monitor your ad KPIs to learn from each iteraon and opmize accordingly. accordingly.
Review The Film: Measuring for Success
ATTRIBUTION A TTRIBUTION MODEL Establishing an aribuon model is imperave to beer understand the li driven by adversing spend and the touch points responsible for the conversion during the customer journey. Facebook aributes conversions to the day of the click and/or impression. Specically, Facebook oers con version tracking based on a 1 day, 7 day and 28 day post-click and/or post-impression model (unfortunately the maximum window is 28 days, so you’re a bit limited if you have a parcularly long path to purchase). By default, Facebook will aribute a purchase (or any other acon) to a campaign if it
happened 1 day aer the ad impression or 28 days aer the user clicked on the ad. You can change the aribuon model to beer t your business, however, we encourage you to consider both view and click events in it, as most people don’t click on ads and then make a purchase directly on another device. Facebook can aribute this transacon to a specic campaign as Facebook users are logged in on all their devices. If you’re using other analycs tools for your reporng, it won’t consider this data, which is why most cross-device aribuon from Facebook is not being included.
You can change the aribuon model to beer t your business, however,, we encourage you to consider both view and click events however in it, as most people don’t click on ads and then make a purchase directly on another device.
The Kick O: Building the funnel
CONVERSION FUNNEL CAMPAIGN OBJECTIVE
AD SET
ADSET 1
AWARENESS AW ARENESS Campaign 1: Website Conversions.
Campaign 2: Website Conversions.
ADSET 3
Exclude lookalike 9% and 2%
ADSET 3 ADSET 1
PREFERENCE
Campaign 3: Product Catalogue for FB.
Lookalike 9%, Exclude Lookalike 2%
ADSET 2
ADSET 2
OPTIMIZATION
Lookalike 10%,
Landing Visitors WCA (30-days duraon) duraon) Excluding product visitors, basket visitors and clients
Product Visitors WCA (30-days duraon) duraon) Exclude basket visitors and clients
Conversions: Landing View Content Content
FB + IG + Audience Network
Conversions: Product View Content Content
FB Newsfeed Desktop
*Unique Daily Reach or Impression if audience is <100K
Campaign 4: Product Catalogue for FB.
PURCHASE
ADSET 2
Add to Cart WCA WCA (duraon (dur aon 60 days) days) Exclude basket visitors and clients
ADSET 3 ADSET 1 Campaign 5: Product Catalogue for FB.
ADSET 2 ADSET 3
LOYALTY
Clients WCA (15 days days afer purchase, 90 days duraon) dur aon)
FB + IG + Audience Network
FB Newsfeed Mobile + Audience Network IG
Conversions: Add to Cart
FB Newsfeed Desktop
*Unique Daily Reach or Impression if audience is <100K
FB Newsfeed Mobile
Conversions: Purchase
FB Newsfeed Desktop
ADSET 3 ADSET 1
PLACEMENT
FB + IG + Audience Network
Lookalike Lookalik e2 %
ADSET 2
ADSET 1
CONSIDERATION
TARGETING
*Unique Daily Reach or Impression if audience is <100K
Conversions: Purchase *Unique Daily Reach or Impression if audience is <100K
CREATIVE
BUDGET
2-3 creaves creaves per ad set. Carousel ads / Video Carousel ads / Canvas
30% of overall ad spend
2-3 creaves creaves per ad set. Carousel ads / Video Carousel ads
Product Feed (Mul Product Layout)
15% of overall ad spend
20% of overall ad spend
FB Right Column
FB Newsfeed Mobile
Product Feed (Single Product Layout)
15% of overall ad spend
FB Right Column FB Newsfeed Desktop FB Newsfeed Mobile FB Right Column
Product Feed (Mul Product Layout + Cross-selling/ Up-selling Setup)
* Instagram for levels 3, 4, 5 can be run with Website Conversion separate campaigns as DPA are not available for this placement yet, use Carousel Ads instead. * If ads are underdelivering, Re-allocate ad-dollars to Level 1 to feed the funnel. * Re-allocate ad-dollars to placement ad sets wi th higher ROI."
20% of overall ad spend
Resources Funnely’s own data Facebook for Business: hps://www.facebook.com/business Facebook Blue Print: hps://facebook.exceedlms.com/student/home Facebook for Developers: hps://developers.facebook.com hps://www.facebook.com/busine .com/business/resources ss/resources Support: hps://www.facebook
Jonloomer: hp://www.jonloomer.com/ Facebook DR Acvaon Guide
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